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April 9, 2009

Blair Did Not Inspire Confidence

Filed under: Basketball,Draft,NBA — Chas @ 9:43 am

If anyone, I mean anyone has any ties to DeJuan Blair. Print this entire article and make him read it (and maybe pass it along to LeSean McCoy).

What happens to many athletes and their money is indeed hard to believe. In this month alone Saints alltime leading rusher Deuce McAllister filed for bankruptcy protection for the Jackson, Miss., car dealership he owns; Panthers receiver Muhsin Muhammad put his mansion in Charlotte up for sale on eBay a month after news broke that his entertainment company was being sued by Wachovia Bank for overdue credit-card payments; and penniless former NFL running back Travis Henry was jailed for nonpayment of child support.

In a less public way, other athletes from the nation’s three biggest and most profitable leagues—the NBA, NFL and Major League Baseball—are suffering from a financial pandemic. Although salaries have risen steadily during the last three decades, reports from a host of sources (athletes, players’ associations, agents and financial advisers) indicate that:

• By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.

• Within five years of retirement, an estimated 60% of former NBA players are broke.

The Wall Street meltdown is only the latest threat to athletes’ financial health. “Athletes have a different set of challenges from, say, entertainers,” says money manager Michael Seymour, the founder of Philadelphia-based UNI Private Wealth Strategies. “There’s a far shorter peak earnings period [in sports] than in any other profession, and in many cases they lack the time and desire to understand and monitor their investments.”

It’s long, but a must read. Flat out, especially for someone like DeJuan Blair.

Look, I have no problem with Blair turning pro, and I happen to agree that he probably would not go much higher in the draft. That said, his decision-making process was unnerving.

Just how Blair came to that determination raised an eyebrow or two, including those of some Pitt officials who were present at his news conference. Blair said he based his decision not on the feedback he received from Panthers coach Jamie Dixon, who has close contacts with general managers and scouts, but by his own investigation on the Internet.

“I’m an Internet freak,” Blair said. “I go on all the draft boards. No one has me going in the second round. That’s almost a guarantee to me.”

In an interview Tuesday afternoon, Dixon mentioned how uninformed those Internet sites are when it comes to projecting players in the NBA.

“It’s way too early to talk about a number,” Dixon said. “There are too many factors, unknowns to even consider a number. As we all know, as we’ve seen in the past, they’re largely inaccurate but fun to talk about.”

Blair admitted that he did not give much consideration to Dixon’s advice. Blair said his decision largely was based on conversations with his family.

“I turned to my family,” Blair said. “Then my coaches came in. I was really into my family. At the end of the day, I was going to make the decision … I came to my decision that I wanted to turn pro. It’s a dream come true.”

Blair said the highest he has seen his name on a mock draft is No. 8 and the lowest was No. 22. The Post-Gazette yesterday could not find a mock draft in which Blair was projected to go higher than No. 20.

Oh, please. Oh, please. Please do not hire family to handle the money. Please make sure you make an effort to learn about where your money is going. And I repeat, read that damn Sports Illustrated article.

I get that he wants to take care of his family and the economics make it important. At the same time, he has to limit just how far he’s taking care of his family.

The marketing deal, not surprisingly, is starting with stuff locally.

Cook said Blair will maintain a residence in Pittsburgh throughout his NBA career and desires a long-term relationship with the city. Cook said Blair is close to signing a deal with a local car dealership and is discussing other local advertising opportunities.

“It’s all designed to keep his image in Pittsburgh,” Cook said.

“This is my home,” Blair said. “I’ll always be here. I’m going to try and take Pittsburgh over whenever I get done with this basketball stuff.”

If you plan to be in Pittsburgh a good deal of the time, then take advantage of it and keep taking classes. Learn as much as you can about taking care of your own money and where it is going.

And on the plus side, his immediate family will stay close to him, and hopefully keep him grounded.

Blair, who turns 20 on April 22, has the full support of his family. His parents, Greg Sr. and Shari, and an aunt, Sharene Dixon, plan to move to the city of the team that drafts him to help ease his transition.

“When he started at Pitt, I used to say, ‘You’re going the whole four years.’ He changed my mind,” Shari Blair said.

Right now, DeJuan Blair just needs to really work on his conditioning. Nothing helps a draft stock for a guy who has some conditioning questions by demonstrating a determination to be in great shape.





Chas, your concerns are right-on. I frequently post about academics and how important it is for a player (or non-player) to earn a marketable degree. Unfortunately, too many student-athletes don’t understand the importance of the entire word. I fear that DeJuan in a few years will find out that it takes more than money to make money and that the City of Pittsburgh (or any other city) will say, “Hey, we love you, but we ain’t giving you any of our money”.

Put a million dollars in the bank account of any college student (athlete or non-athlete). If that is all he has, it, by itself, is not sufficient to sustain him for the next 50 years. Let that same person earn a marketable degree (with no money in the bank), and he has a much better chance of financial comfort for the next 50 years.

Comment by BigGuy 04.09.09 @ 10:05 am

It’s kind of sad that these kids don’t listen to the advice of their coaches. I don’t think Jamie wanted DeJuan to not go to the league, he just wanted him to feel it out and get “real” information first. I think its dissapointing because Dixon does seem to have the players best interest at heart. He knows Blair getting drafted high is an overall plus for the program. By telling Blair to wait and see what workouts go it actually hurts Dixon in the program. He would have no definite to tell recruits for this next year, he wouldn’t be able to move forward and pick someone up, and the possibility that Blair leaves a gaping hole in the middle would still be likely. I think Dixon wanted Blair to make sure he is a high draft pick before leaving.

Comment by Ontario Lett's Go Pitt 04.09.09 @ 10:08 am

Big Guy, let’s not exaggerate. Even at today’s interest rates, that million in the bank would have paid more each year than my salary for each of the first ten years after I graduated from Pitt with two graduate degrees. If he can get it, that’s great, but I agree he needs to find or learn good management.

Comment by Mitch 04.09.09 @ 10:36 am

Unfortunately, this is the downfall of youth. He is too young to understand that you don’t need to jump into everything but you should hedge your bets. The prospect of big money is alluring but that is why there are coaches that actually mean well and use their contacts to give you the real story.

Needless to say, this was not Blair’s finest hour.

Comment by Joey D 04.09.09 @ 10:42 am

Hopefully he’ll be hands on with his money and actually be informed about what/where it’s being invested and spent. Also, I think a lot of these players go broke trying to keep up with the superstars. If you don’t make Kobe or LBJ money you can’t live their lifestyle…

Comment by Pittastic 04.09.09 @ 10:49 am

Can you imagine how fast those first couple million will go in whatever NBA city he ends up in? It just isn’t that much money, when you’re talking about family, houses, agents, lawyers, friends, cars……it’ll be mostly spent by the time the family gets comfortable on the new wraparound sofa.

And that’s assuming he’s somewhat sensible and doesn’t hire a staff. Remember the stories about how many people Ron Artest, an NBA star, had on retainer? When you added all the salaries up, he was under water.

Comment by hugh green 04.09.09 @ 10:50 am

I think the point about the million dollars is off. I agree with Mitch, it would pay for a decent life. The problem is, no kid who gets a million dollars at age 20 is going to put it in the bank, live off the interest, keep working, and live in a crappy apartment like we all did.

Comment by maz. 04.09.09 @ 10:52 am

The statement about $1,000,000 in the bank not being enough is reasonable enough. As I recall from some radio talk show on money and investing their is a “rule of thumb” that says if you divide your total invested assets by 25 the result is the amount you can withdraw and spend annually so that you can continue to always get that amount (adjusted upward for inflation) and never run out of money no matter how long you live. If you divide $1 million by 25 you get $40,000/year. That is hardly enough to insure a comfortable existence for the rest of your days much less pay for the bling and expensive autos and homes pro athletes like to acquire. The grim post-playing days economic stats are hardly surprising.

Comment by pitt1972 04.09.09 @ 10:54 am

“Even at today’s interest rates, that million in the bank would have paid more each year than my salary for each of the first ten years after I graduated from Pitt with two graduate degrees.”

Mitch, I am not trying to be facetious, but what interest rates are being paid in Pittsburgh? The last I checked, CD’s were under 3% (i.e. under $30,000 return on $1 million). Living in the northeast where I do, that may cover one’s property taxes for a year plus the mortgage for 6-8 months. (Opps. I forgot that one would have to pay federal and state income taxes on that. One will also have to pay federal and state income taxes on the initial millions the NBA will pay.) Do an analysis of, perhaps, drawing out a portion of the principal each year for 25 years in addition to the interest and let me know what is left in one’s account at age 50.

Comment by BigGuy 04.09.09 @ 11:00 am

Mitch, as a follow-up. With your two graduate degrees, any guess as to what you may be earning when you are 50 years old? For your (age) counterpart, any guess as to their type of employment and salary without any degree when they also turn 50?

Comment by BigGuy 04.09.09 @ 11:29 am

I don’t understand the hiring the attorney more than anything else. This guy is going to take a certain percentage then the agent he hires is going to take another percentage. Most agents are attorney’s if I’m correct so what the heck is the point of hiring this guy? Why have an extra middle man taking more money from you? Now your paying two people percentages and not one, that just shows why these guys go broke in years, they make decisions like this. I hope it works out for the kid cuz I hate how these blood sucking go-betweens steal money from kids they really do nothing for besides give mis information.

Comment by Ontario Lett's Go Pitt 04.09.09 @ 11:48 am

It is not uncommon for an athlete to have different representation for player contract matters (e.g., negotiating the actual contract with a team) and promotional matters (e.g., product sponnsorship, advertising opportunities, management of the player’s name and image). What does seem a little out of the ordinary is that Blair is hiring the promotional representation before selecting a player agent. Normally, I would expect this to occur in the reverse order, particularly for a player who is not expected to be drafted at the top, but Blair must believe that marketing opportunities will present themselves prior to the draft.

Comment by Pantherman13 04.09.09 @ 11:55 am

BigGuy–you are absolutely correct. In my example–That 1/25 number amounts to a 4% annual after tax return on the $1 million. That assumes something like an average gross return (over many years/several decades) in the 7-8% range–like what you might get from a 50-50 mix of well diversified securities and government bonds. No one would be getting even that kind of overall return on a total investment portfolio, of course, in the kind of really bad economy we are in today. Bottom line is my example is reasonably conservative for the long term and not even close to reasonable in the present economy. Maybe if Mitch’s got his degrees back when I got mine 30-40 years ago his statement might have made economic sense back then since $1 million was worth far more at that time than it is now.

Comment by pitt1972 04.09.09 @ 12:00 pm

the PG article mentioned that the lawyer would be taking a 15% cut of Blair’s marketing/advertising/merchandising income, so you hope he’s eating from a different pie than the agent.

Comment by hugh green 04.09.09 @ 12:00 pm

First, one million dollars is NOTHING!!! Deduct taxes, which Mr. Obama will undoubted raise. Then there are expenses: lawyer fees, agents’ fees, accounting fees, etc. And what about health insurance when his playing days are over. And what is the going interest rate? 2% at best? That money will certainly last.
And where does Blair get the audacity to believe that he can market his Pittsburgh heritage? What in the hell did he do? All American. So what! He is not Clemente or Stargell or Franco or Mario. He played basketball for two years at Pitt. He did not lead them two the Final Four, nor did they win the Big East Championship (tournament aside) with his play. And his statement that he wants his number retired and hanging from the rafters in The Pete. Please. He is acting like a grandiose child.

Comment by Gas 04.09.09 @ 3:03 pm

Good luck to the Grizzly Blair thank-you for 2 fantastic years, 2 first rounders this year which will double our amount current NBA players. I think we’re really seeing some big improvements in the basketball program and though we’ll take a step back next year we’ll still probably win 20-25 games not bad for a rebuilding year.

Comment by Nick 04.09.09 @ 3:40 pm

You guys seem to be forgetting that making the league and staying in the league for a while will make him pension eligible, as well as benefits eligible. Now that won’t be millions, of course, but it will certainly be a nice perk to have. How many of us will be receiving a check and benefits at 40, on top of whatever work we’re doing?

Comment by maz. 04.09.09 @ 4:35 pm

I think people are concerned that, should something go wrong (injury or other), he wouldn’t be around long enough to be eligible for the pension. I know we’re all hoping he has a long and illustrious NBA career and that money is never an issue, but at the very least hopefully he can stick around long enough to be eligible for that pension/benefit package.

Gas, Blair certainly has the personality, charisma and talent to market his Pittsburgh heritage. I don’t think its that ridiculous. And if he becomes a star in the league it would be great for Pitt and the city of Pittsburgh if he marketed himself as a “Pittsburgh” guy.

Comment by TJ 04.09.09 @ 5:01 pm

I hope DeJuan does great. But from what I see so far, a 19 year old kid becomes a media star even making the NYTimes with a feature about the size of his butt. But I still see that expression on his face when Dixon put him on the bench whenever he made his second foul in the first half. Ready for the NBA? I certainly hope so. Give Dixon credit for being willing to work through the process with this kid. Maybe it is only hard knocks that make us listen to reason when we are so totally full of ourselves.

Comment by TonyinHouston 04.09.09 @ 9:43 pm

Good luck to Blair. It’s a shame he ignored Dixon’s advice – and then let everyone know that he ignored Dixon. I don’t agree with signing with someone now – you never know how things could change between today and the draft (injury, gaining weigth, falling in the draft after workouts, …). As of today he’s most likely a first round pick, but a lot can change. They don’t know yet how many international players may go in the firdy round. The safest thing would have been to hold off on signing to keep his options open.

Comment by Dishman 04.09.09 @ 10:06 pm

You know what?

His decision is final. We may not like it, we may think he’s just being a dumb kid, but all of us complaining won’t change it.

I still think he made the right decision.

Sure 1 million won’t last him long, but I believe if he gets picked in the early 20s, it’s about a million per year, and it goes up slightly every year for the first three years.

So that’s more like 3 million spread out over 3 years.

And if you’re a first rounder, it’s all guaranteed money.

Plus there are 4th year options and stuff that are even higher.

So it’s not like he’s just getting a million bucks and that’s it, like some people are acting in here.

I’m not saying he won’t blow it all or something like the guys in the story, but I still think a lot of people here are just pissed because he’s not going to be wearing that Pitt uniform next year.

If I were 20, and there were 3 million+ dollars waiting for me, and all I had to do was drop out of a college that I probably wasn’t working too hard at anyways (and for, let’s face it, the same type of bullshit degree that the majority of athletes get…. it’s not like Blair’s an engineering major), my Dad would kick my ass if I didn’t take it!

Comment by Jimbo Covert's my dad 04.10.09 @ 12:18 am

Here’s the NBA pay scale BTW:

link to nba.com

I mean, say what you want about young athletes blowing money, but for the majority of collegiate athletes (in other words, guys just skating by getting crappy degrees) leaving school to get drafted in the 1st round is a great decision.

I mean, he’ll make more in that three years than most people who get a garbage arts degree (and let’s not kid ourselves, a lot of college athletes just get similar, useless degrees to maintain eligibility) get in 20 years.

Now whether he’s smart with the money or not is up to him, but unless he slips to the 2nd round (no guaranteed cash) and completely washes out of the NBA, going into the draft now is the absolute best decision that a guy in his shoes can make.

It’s not like he’s partaking in Myron Rolle-esque academics at Pitt right now.

Comment by Jimbo Covert's my dad 04.10.09 @ 12:26 am

I don’t care one way or another than he left for the NBA – that’s a choice he made and he’ll live with it, good or bad.

What I find hilarious is that he (and his family apparently) think that the city of Pittsburgh and WPA will give two craps about him in 5-10 years. Sure, he’s a fun kid and PITT had a great run with him on the BB team – but he lacks the maturity and insight to realize Pittsburghers could care less about basketball on the whole. Some PITT alumni will remember his name probably, but that’s about it.

There’s a reason very few college ‘stars’ move back into PGH after their playing careers – and one is that whatever success they really have – in the national media on a professional level – happens in another city, and hopefully, on a bigger stage.

Contrast that the the Steeler stars who have found success – and then stayed here to ‘own’ the city.

And last but not least, sorry to say but in my opinion Blair will not “own” anything unless he becomes a star in the NBA which I’ll bet never happens. He’ll obviously make a roster and probably have a serviceable career – but any comparisons to established stars (some I’ve heard are as far-fetched as Charles Barkley… right!)are off base I think.

If I were his parents I’d counsel him to manage his money like this… “Assume you’ll fail in the NBA and be crippled for life – invest in some way that will keep your standard of living healthy for all your days”. Of course they won’t do that – as evidenced by them already saying “The whole family is moving to whatever city he ends up in”.

Guys, I think we are going to looking back at all this in 10 years and be going ‘Remember DeJuan Blair, what ever happened with him?”

Comment by Reed 04.10.09 @ 4:47 am

One more point..

Lawyer’s fees
Agent’s fees
Federal taxes
State taxes
Local taxes
Union fees (bigger than most think)

That’s where 60-70% of those big salaries you guys are tossing around go – and what these young kid’s have no conception of.

A few million $$s, most spent unwisely?? Nothing really as far as lifetime earnings. Don’t discount the earning power over 40 years of a degree… it would have been a beautiful thing to have to go along with a professional sports career.

Comment by Reed 04.10.09 @ 4:54 am

i hope his parents and aunt keep him in check and do not become part of the problem like many family members have to these young pros with millions. i DO NOT want to see a sob story about him 5-10 years from now on HBO Real Sports.

Comment by CN2001 04.10.09 @ 6:40 am

Jeez all these haters of the decision for financial reasons. I recently got my undergrad from Pitt and started out of college around 25k. you tell me that staying 2 more years to get the degree would be worth it? not in this economy. Plus, his upside really isnt that much higher than it would be now, and what if he gets hurt?!

As far as his maturity, etc… did anyone here have the potential to make $1MM when they were 20 yrs old? Do you really think if you did, you would be much wiser?

Is not the same thing that could happen to Blair responsible for most of America’s probelms today (living above your means, running up credit card debt on junk like high-def tvs, buying over-priced cars for the image, buying an unnecessarily-large home and not understanding the terms)? Can any of us truly, honestly say that none of us are guilty of at least one of these?

Why does it seem in Pittsburgh that we can’t ever be happy fans, but instead have negative feelings for someone unless they are perfect?!

Comment by greg 04.10.09 @ 9:10 am

There’s obviously a lot that’s already been said on this topic, but if Blair were taking my advice, I’d tell him try to find whomever LeBron James gets his financial advice from.

Maybe there are horror stories I haven’t heard about, but for his youth, he’s impressed me with the way he’s handled his fame and money.

And greg, I don’t think Pittsburgh fans are unhappy; I think we’ve accepted that we won’t have Blair for another season, and we’re ready to move on. What I see is that fans appreciated Blair’s play and contributions to the team so much, we feel compelled to amuse ourselves with the question, “what advice would you give Blair?”

Comment by Colt Convert 04.10.09 @ 12:31 pm

I hope all works out for him but in reality I save my sympathy for those who never had a chance in life over those who blew their fame/fortune.

Comment by Chuck Morris 04.11.09 @ 8:47 pm

First off let me say that I think Dejuan Blair has lost his frickin mind. You are tellin me that he couldnt wait two months for his money. The only reason he signed with that attorney was to get some early money from endorsement deals or from an up front payment by the attorney. Who was Dejuan listening to? Cartmen,Homer Simpson,Obama,the NBA draft boards are you kidding me. I loved that he played well for Pitt and seemed like a good guy but holy shiznip batman he must not be to smart. Giving up your shot at coming back to Pitt if his workouts werent good or that he ate himself to 300 lbs was just not very good management. Previously I brought up the interviews that Dejuan gave were he said that he used the internet to see where he would be drafted and I knew right there what he was thinking.
Hey one draft board has Sam young and Dejuan being taken by the BULLS both in the first round like 16th and 28th. Id like to see that.

Good Luck Dejuan and better luck Sam Young

Comment by buzz 04.12.09 @ 6:46 pm

hey how reliable was the source that leaked pitt’s switching to nike? i want to know if i have something to look forward to or not lol.

Comment by jon 04.13.09 @ 4:48 pm

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